Saudi Competition Council rejects SVCP move to acquire competitor

03/12/2015 Argaam

The Saudi Council of Competition has rejected a request by Saudi Vitrified Clay Pipes Co. (SVCP) to acquire Arabian Company for Water Pipes (Acwa Pipe).

 

The council said the deal, if allowed, could have a negative effect on market competitiveness, SVCP said in a filing to the Saudi bourse, Tadawul after receiving the council’s letter of rejection on Wednesday.

SVCP added that the council’s decision will not have any financial impact.

 

SVPC had filed a request in September with the council to be allowed to acquire Acwa Pipe for SAR 160 million.

 

The two companies had signed a memorandum of understanding (MoU) on the proposed deal in 2011, an agreement which was extended several times.

 

Riyadh-based SVCP supplies piping infrastructure for residential and industrial construction. Acwa Pipe is a Saudi-based manufacturer of water, sewage, and industrial pipes.

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